EV Startup EMotorad Raises INR 24 Cr To Build Affordable Ebikes

Electric vehicle (EV) startup EMotorad has raised INR 24 Cr in its Pre-Series A funding round led by Green Frontier Capital (GFC), LetsVenture, and Ivy Growth associates. 

The electric cycle manufacturer aims to utilise the fresh funds to accelerate business growth, hire more industry talents, and scale the business amid the growing demand for ebikes in the country.

Besides, EMotorad said it also plans to build a layer of tech on top of its existing ebike that will enable its users to have access to a one-of-a-kind platform for the cycling community focusing on health and community benefits.

It claimed that the application would revolutionise people’s approach towards ebikes as they would serve as more than an activity tracker with insights to optimise health and experiences.

“We wish to design products and technology in such a way that it places itself in the user’s journey to becoming healthy. An outdoor Peleton of sorts,” said Kunal Gupta, cofounder and CEO of EMotorad. “By doing so, we not only answer their fitness needs but also provide a sustainable and viable mobility option.”

Founded in 2020 by Gupta along with Rajib Gangopadhyay, Aditya Oza, and Sumedh Battewar,  EMotorad aims to bring across premium quality electric cycles at an affordable price by utilising its local sourcing and manufacturing capabilities in India.

Besides its domestic presence, EMotorad has also expanded to Japan, UAE, and Nepal. The startup claims to be present across 82 towns and cities in India and abroad. It also claims to have sold over 16,000 ecycles in India since its launch while exporting 11,000 bikes to the rest of the geographies.

“What struck us the most about EM (Emotorad) is the pace at which they were able to expand the business across geographies in just two years of existence, not only this the technology they are building on the top of their bikes is a game changer, it will change the way people cycle,” said Sandiip Bhammer, managing partner at Green Frontier Capital.

“Cracking new-age distribution channels has been their additional edge and we believe they will be able to attain rapid growth & profits with the vision they have for the company,” Bhammer added.

In fact, the startup is expanding its operations to newer regions while strengthening its presence in already established markets such as Europe and Australia. Emotorad said that it currently expects a 400% growth in the current financial year, FY23.

In FY21, the EV startup recorded a revenue of INR 4 Cr, making its six months revenue INR 140 Cr in FY23, claimed EMotorad. The startup aims to generate a cumulative revenue of INR 165 Cr by the end of FY23.

In fact, the startup also has chosen channel partners such as Tata Croma and Reliance Retail to help it position sales growth in the Indian market.

The number of EV startups in the country is growing at a rapid pace, particularly in the two-wheeler and three-wheeler segments.  

Global consultancy firm McKinsey & Company said in a report last month that the contribution of EVs in new two-wheeler and three-wheeler vehicle sales was expected to rise to 50% and 70%, respectively, by 2030 in the country.

In recent days, several other EV-oriented startups have also raised funds. For example, recently, EV financing startup RevFin also raised $10 Mn in a mix of equity and debt financing Series A round from GFC and LC Nueva Investment Partners

Three-wheeler EV manufacturer Euler Motors raised $60 Mn in its Series C funding round led by Singapore’s sovereign fund GIC earlier this month.

EV intelligence startup Vecmocon raised $5.2 Mn in its Pre Series A round from Tiger Global, Blume Ventures, and other angel investors this month.